Start-up patterns of internationalization: A framework and its application in the context of knowledge-intensive SMEs

• Published in: European management journal 2012-08, Vol.30 (4), p.372-385
• Main Authors: Kuivalainen, Olli, Saarenketo, Sami, Puumalainen, Kaisu
• Format: Article
• Language: English
• Subjects: Born globals; Born-again globals; Finland; Globalization; Internationalization; Knowledge; Management; Multinational enterprises; Patterns; Size of enterprise; Small & medium sized enterprises-SME; Small and medium sized enterprises; SMEs; Startups; Strategic management; Studies
• ISSN: 0263-2373; 1873-5681
• DOI: 10.1016/j.emj.2012.01.001

► We provide a framework to study born globals and other internationally active SMEs. ► We contribute to the discussion what happens after initial internationalization. ► We explain possible outcomes for being so-called born global firm. ► We utilize the sample of 78 knowledge-intensive SMEs to test the framework. ► We suggest that ‘true born-globals’ are more likely to sustain their global position. The already well-documented emergence of born globals, or international new ventures, has created a demand for new approaches to internationalization. The main models challenging the ‘traditional’ process identified in the literature are the born-global and ‘born-again’ global internationalization patterns, which differ in terms of pace and degree of internationalization with regard to antecedents and firm characteristics, respectively. In contributing to this discussion we are especially focusing on the early phases of firms’ internationalization, i.e. start up patterns of internationalization. We take a close look at the three start-up patterns available to knowledge intensive SMEs and provide a framework to analyze these patterns and their outcomes. The framework is tested with results from a research project focusing on the start-up patterns and outcomes of internationalization of 78 Finnish SMEs.